service tax on rent

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hello we have service tax registration for rent but from last year we are not charging service tax on rent because of case Home Solutions Retail India Ltd. & Others vs. UO. now as i heard the result come and we hve to pay tax as it is decided it is taxable service.

so we also issued invoice on tenant for payment of service tax and we have collected service tax which was not charged by us. earlier

NOw my question whether we have to pay service tax with interest or not or whether the previous return we hve to revised or we showed that the service tax is now received and deposited in next quarter ie. 01.04.201o to 30.06.2010

WAITING FOR REPLY

Rgds

Kundan Singh

Replies (6)

V Sumanth

CA Final student

80 Points Posted on 21 June 2010

Hi Friend,

I have gone through internet after reading ur post.I got a word document of an author..i feel it will help you. Go through it fully

Shyam Lal Naik

Service

5656 Points Posted on 21 June 2010

The taxability is not free from controversy.

The High Court of Delhi has again stayed the recovery of the tax.

The Andhra Pradesh High Court has stayed recovery of Service Tax for the past period based on the amendment vide Finance Act, 2010.

Since you have collected the tax, you are required to deposit the same. I would suggest to deposit the tax under protest u/s 73A.

V Sumanth

CA Final student

80 Points Posted on 21 June 2010

Originally posted by : Shyam Lal Naik
	The taxability is not free from controversy. The High Court of Delhi has again stayed the recovery of the tax. The Andhra Pradesh High Court has stayed recovery of Service Tax for the past period based on the amendment vide Finance Act, 2010. Since you have collected the tax, you are required to deposit the same. I would suggest to deposit the tax under protest u/s 73A.

Guest

Posted on 22 June 2010

now u plz tell me how i deposit service tax means quartely wise with interest according to the months, or on full year base , and if i hve to show this in new quarterly return or we have to revise previous return

Rajat Garg

Article

60 Points Posted on 22 June 2010

you dont need to revise previously filed return.

you can show it in the new retuen.

And as per finance act 2010,

Amendments are proposed to be made in the definition of the ‘Renting of Immovable Property Service’ to -

i. provide explicitly that the activity of ‘renting’ itself is a taxable service. The change has been given retrospective effect from 1st June, 2007; and

ii. levy service tax on rent of vacant land where there is an agreement or contract between the lessor and lessee for undertaking construction of buildings or structures on such land for furtherance of business or commerce during the tenure of the lease.